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Posted: 2024-09-17 05:55:44

Consumers who have bad experiences with a product or service often wish they had known more about the business before they went there. 

The Consumer Policy Research Centre (CPRC), a Melbourne-based think tank, has released a report entitled Am I the Only One? calling on state consumer protection agencies to provide more data to consumers.

The report argued it would aid better decision-making and help businesses know where they were going wrong.

CPRC chief executive Erin Turner told Nadia Mitsopoulos on ABC Radio Perth that Consumer Protection WA was already a strong regulator, but there was scope to use more of its data to aid consumers.

"They're really good at naming companies that are doing the wrong thing and warning the public, but we think there's room to improve how they use the data they collect, just to let people know what's happening and what to avoid," Ms Turner said.

"We're missing an early warning system — there's no sense of the trends of data, what are all the problems people in WA are experiencing?"

A woman stands in an office.

Erin Turner says the proposal only addresses part of the problem. (ABC News: Eric Tlozek)

She said as well as naming companies that were clearly doing the wrong thing, agencies could also be collating the complaints they get every day to identify broader trends.

"The trend in that data is really valuable," she said.

"It lets us know what the common problems are, what businesses are causing those problems, and who to avoid."

Data can help businesses as well

Other states do provide some trend information to the public.

"In New South Wales, there's a register with any business who has 10 or more complaints a month … and it works," Ms Turner said.

"There are businesses who see that, and they change their behaviour because of it.

"In Queensland, they look at trends, so we can see things like car issues are a major issue in Queensland.

"This data is valuable, and we think WA could benefit from it."

She said the NSW system provided an early warning not only for consumers, but also for businesses, to help them get back on track.

"One of my favourite things about what New South Wales is doing is that when a business gets to about seven or eight complaints a month, they get in contact with that business and they talk to them about the reasons behind that complaint," she said.

"Great businesses can learn about what's going wrong and choose to change.

"That's great for business, it's great for their customers, it helps a regulator do their job even better.

"But for businesses that ignore those warnings and those signs, there's a name and shame effect."

More reliable than online reviews

Ms Turner said the NSW approach had been running for several years, with no signs that it was being used for malicious false complaints to harm businesses.

She said it was more reliable for consumers than looking at online reviews, which could not be verified.

"The New South Wales system has been running for several years — they've reviewed it, and they found no issues with that," she said.

"One of the things that's great about regulator data is that someone has to have gotten in touch with that regulator and quite often there's a back and forth.

"Often a regulator is giving help to that person and understands the issue in a level of depth.

"That's not always the case with online reviews."

In some cases, the trend data has resulted in businesses closing down.

"There are some repeat offenders on the list. I'd say some large furniture retailers and some real estate agents appear pretty constantly," she said.

"They haven't shut down, but I hope that they get that information and they see the signal and adjust their behaviour.

"We have seen companies that have chosen to stop trading, but they were doing such abusive, scam-like practices that that is a great outcome for consumers."

In a statement, a spokesperson for Consumer Protection WA said it would give consideration to establishing a complaints register similar to the one in NSW as part of the next review of the Fair Trading Act.

"Consumer Protection utilises measures, such as our public warning notices, when repeated consumer complaints are receive," the spokesperson said.

"Those notices have covered a range of issues and traders, including tradespeople, retailers, motor vehicle dealers and a towing company.

"We also work behind the scenes with consumers who have reported issues they may have had with a business or product to assist them to obtain a fair outcome.

"Consumer Protection also provides extensive public education on how consumers can best protect themselves and understand their rights.

"Consumer Protection will continue to work with our interstate counterparts and also with our key stakeholders, such as financial counsellors and community legal centres, to ensure that the data we collect and make available to the community enhances the protection of consumers."

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